(New York, NY) – Cortec Group (“Cortec”), a New York-based private equity firm that focuses on investing in and growing entrepreneur-led and family-owned middle market specialty consumer, business-to-business, distribution and healthcare services, and products companies, announced that Groundworks, LLC (“Groundworks”), in which Cortec Group Fund VII, L.P. (“Cortec Fund VII”) made a significant growth capital investment on January 17, 2020, will launch its first customer-facing location under the Groundworks® brand name in Omaha, Nebraska. The expansion is being facilitated by the acquisition of CLS Foundation Repair and Waterproofing (“CLS”), which was completed on December 29, 2021. CLS is the ninth acquisition completed by Groundworks since Cortec Fund VII’s investment. Terms of the transaction were not disclosed.
With more than 30 years of history in the Nebraska market, CLS serves the single-family residential market with a suite of services including foundation repair, basement waterproofing, crawlspace encapsulation and concrete repair, and other related services. CLS will be rebranded Groundworks® and continue to offer homeowners foundation and water management solutions delivered with superior customer service, national warranties, and trusted local support.
Virginia Beach, VA-based Groundworks is the nation’s leading foundation and water management solutions company, with a footprint of 49 offices servicing 28 states and employing approximately 4,000 associates nationwide. CLS represents Groundworks’ 23rd acquisition since its inception in 2016.
“Groundworks always planned to be a customer-facing brand, but we needed time to mature as an organization and to find the right opportunity. After five years of building our team and investing in our business, we knew the time was now, and there was no better market opportunity than Omaha,” stated Matt Malone, Founder and CEO of Groundworks. “This market demands a true expert in foundation repair and waterproofing services. Together with the hard-working employees at CLS, we will aggressively grow the business, offer high-paying career opportunities, and deliver exceptional service to our customers.”
“The partnership with Groundworks combines the local talent and pride of CLS with the national benefits and resources Groundworks brings to the table. This combination will give our customers and our employees the best of both worlds,” said CLS Founders Dave and Ginger Geise. “We are especially excited for our employees who will now have real career development and financial growth opportunities with the company. We are proud of our legacy in Omaha and look forward to continue winning as Groundworks.”
Bill Tucker, a Cortec Partner, said, “This marks the first time the company will go to market as Groundworks and exemplifies the significant opportunity to expand the Groundworks brand into new markets.” Cortec Co-President Dave Schnadig added, “Matt and the Groundworks team continue to be very successful in executing strategic acquisitions while driving organic growth in the business. We are looking forward to continuing to support the team in building our unique home services platform.”
About Groundworks
Groundworks® is the nation’s leading foundation and water management solutions company. Headquartered in Virginia Beach, VA, the company provides foundation repair, basement waterproofing, crawl space repair and encapsulation, and concrete lifting services. Groundworks is comprised of AFS Foundation & Waterproofing Specialists™, Alpha Foundations™, AquaGuard Foundation Solutions™, Baker’s Waterproofing™, BQ Basements & Concrete™, Complete Basement Systems®, Dry Pro Foundation & Crawlspace Specialists™, Florida Foundation Authority™, Foundation Recovery Systems™, Foundation Repair of Western Colorado™, Foundation Systems of Michigan™, Indiana Foundation Service™, Innovative Basement Authority™, JES Foundation Repair™, Mount Valley Foundation Services®, Ohio Basement Authority™, Ohio Basement Systems™, Tar Heel Basement Systems®, A-1 Sewer & Drain™, Independence Materials Group™, and Bizwiz Software™. Since 1975, the combined companies have helped nearly 1.5 million homeowners protect and repair their most valuable asset, their home. Groundworks has been named numerous times to the Inc. 5000 fastest growing companies, BBB® integrity award, and Best Places to Work™ lists. For more information, visit the Groundworks website.
About CLS
Headquartered in Omaha, NE, CLS is a leading provider of foundation repair, basement waterproofing, crawlspace encapsulation, concrete repair and other related services in Nebraska, South Dakota, and Iowa. CLS services the single-family residential market, providing a critical suite of services to homeowners which preserve home value, integrity, and safety. For more information, visit the CLS website.
About Cortec
Founded in 1984, Cortec invests in market-leading, middle-market specialty consumer, distribution, healthcare and specialty services and products businesses in partnership with entrepreneurs, families and management teams who want to work with Cortec to drive growth and improve business fundamentals. More information about Cortec can be found at www.cortecgroup.com.
